LUSAKA, Aug. 17 (Xinhua) -- The Zambian cabinet has approved a bill that will see the amendment of a law governing the petroleum sub-sector in order to increase investment, a government spokesperson said on Thursday.
The cabinet approved the bill for the amendment of the Petroleum (Exploration and Production) Act of 2008 during its meeting on Monday, according to chief government spokesperson Kampamba Mulenga.
She said that the current law was inadequate, leading to the under-exploration of the country's petroleum potential.
"The gaps in the current law include, among others, unclear mode for government participation in the sector, lack of clarity of the fiscal regime, and absence of clear licensing system for blocks reserved for government," she said in a statement.
These factors coupled with lack of institutional capacity have made the country uncompetitive to attract investments, she added.
According to her, the proposed bill will provide for the development of a licensing system that will clearly show how government will participate in exploration and production, development of a clear and robust fiscal regime that will be both attractive to investors and fair to government.
